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The World Bank Document of The World Bank Public Disclosure Authorized Report No: ICR2386 IMPLEMENTATION COMPLETION AND RESULTS REPORT (IDA-39890 IDA-39891 IDA-47180) ON A CREDIT Public Disclosure Authorized IN THE AMOUNT OF SDR, 235.1 MILLION (US$348.2 MILLION EQUIVALENT) TO THE FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA FOR A ROAD SECTOR DEVELOPMENT PHASE II PROJECT (APL2) Public Disclosure Authorized December 12, 2012 Transport Sector Country Department AFCE3 Africa Region Public Disclosure Authorized CURRENCY EQUIVALENTS (Exchange Rate Effective June 30, 2012) Currency Unit = Ethiopian Birr SDR 1.00 = US$1.52 US$1.00 = 17.82 Birr FISCAL YEAR July 8 – July 7 ABBREVIATIONS AND ACRONYMS AC Asphalt Concrete APL Adaptable Program Lending DBST Double Bituminous Surface Treatment DMOs District Maintenance Organizations ERA Ethiopian Roads Authority ERTTP Ethiopia Rural Travel and Transport Program GoE Government of Ethiopia HDM4 Highway Development and Management Model ICR Implementation Completion and Results IDA International Development Association M&E Monitoring and Evaluation MIS Management Information System NPV Net Present Value PAD Project Appraisal Document PDO Project Development Objectives PSNP Productive Safety Nets Programme RSDP Road Sector Development Program SDPRP Sustainable Development and Poverty Reduction Program SDR Special Drawing Rights VOCs Vehicle Operating Costs WIDP Wereda Integrated Development Plans Vice President: Makhtar Diop Country Director: Guang Zhe Chen Sector Director: Jamal Saghir Sector Manager: Supee Teravaninthorn Project Team Leader: Fiona J. Collin ICR Team Leader: Bernard Aritua FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA ROAD SECTOR DEVELOPMENT PHASE II PROJECT (APL2) CONTENTS A. Basic Information ............................................................................................................ i B. Key Dates ........................................................................................................................ i C. Ratings Summary ............................................................................................................ i D. Sector and Theme Codes ................................................................................................ ii E. Bank Staff ....................................................................................................................... ii F. Results Framework Analysis .......................................................................................... ii G. Ratings of Project Performance in ISRs ....................................................................... vi H. Restructuring (if any) .................................................................................................... vi I. Disbursement Profile ..................................................................................................... vi 1. Project Context, Development Objectives and Design ............................................... 1 2. Key Factors Affecting Implementation and Outcomes .............................................. 4 3. Assessment of Outcomes .......................................................................................... 11 4. Assessment of Risk to Development Outcome. ........................................................ 14 5. Assessment of Bank and Borrower Performance ..................................................... 15 6. Lessons Learned........................................................................................................ 17 7. Comments on Issues Raised by Borrower/Implementing Agencies/Partners........... 18 Annex 2. Outputs by Component...................................................................................... 21 Annex 3. Economic and Financial Analysis ..................................................................... 36 Annex 4 - Bank Lending and Implementation Support/Supervision Processes ............... 40 Annex 5. Summary of Borrower’s ICR and/or Comments on Draft ICR ........................ 42 Annex 6. Comments of Co financiers and Other Partners/Stakeholders .......................... 43 Annex 7. List of Supporting Documents .......................................................................... 45 Annex 8. Map Showing Project Roads under APL2 ........................................................ 46 A. Basic Information ET-Road Sector Project Country: Ethiopia Project Name: (APL2) to support the Government's RSDP IDA-39890,IDA- Project ID: P082998 L/C/TF Number(s): 39891,IDA-47180 ICR Date: 08/30/2012 ICR Type: Core ICR Lending Instrument: APL Borrower: GOE Original Total XDR 110.00M Disbursed Amount: XDR 235.09M Commitment: Revised Amount: XDR 235.10M Environmental Category: A Implementing Agencies: Ethiopian Roads Authority Co-financiers and Other External Partners: B. Key Dates Revised / Actual Process Date Process Original Date Date(s) Concept Review: 12/04/2001 Effectiveness: 06/08/2005 06/08/2005 Appraisal: 05/25/2004 Restructuring(s): 06/04/2010 Approval: 09/22/2004 Mid-term Review: 03/31/2007 11/01/2007 Closing: 06/30/2010 06/30/2012 C. Ratings Summary C.1 Performance Rating by ICR Outcomes: Moderately Satisfactory Risk to Development Outcome: Moderate Bank Performance: Moderately Satisfactory Borrower Performance: Moderately Satisfactory C.2 Detailed Ratings of Bank and Borrower Performance (by ICR) Bank Ratings Borrower Ratings Moderately Quality at Entry: Government: Moderately Satisfactory Unsatisfactory Implementing Moderately Quality of Supervision: Moderately Satisfactory Agency/Agencies: Unsatisfactory Overall Bank Overall Borrower Moderately Satisfactory Moderately Satisfactory Performance: Performance: i C.3 Quality at Entry and Implementation Performance Indicators Implementation QAG Assessments Indicators Rating Performance (if any) Potential Problem Project Quality at Entry No None at any time (Yes/No): (QEA): Problem Project at any Quality of No Satisfactory time (Yes/No): Supervision (QSA): DO rating before Satisfactory Closing/Inactive status: D. Sector and Theme Codes Original Actual Sector Code (as percent of total Bank financing) Central government administration 9 9 Roads and highways 90 90 Sub-national government administration 1 1 Theme Code (as percent of total Bank financing) Infrastructure services for private sector development 50 50 Other financial and private sector development 25 25 Rural services and infrastructure 25 25 E. Bank Staff Positions At ICR At Approval Vice President: Makhtar Diop Callisto E. Madavo Country Director: Guang Zhe Chen Ishac Diwan Sector Manager: Supee Teravaninthorn C. Sanjivi Rajasingham Project Team Leader: Fiona J Collin John D. Riverson ICR Team Leader: Bernard Aritua ICR Primary Author: Bernard Aritua F. Results Framework Analysis Project Development Objectives (from Project Appraisal Document) The objectives of the RSDP 2 Stage 2 (the Project) is to support the increase in road transport infrastructure and improve its reliability, strengthen the capacity for road construction, management and maintenance, and create conditions conducive to private sector participation in the road transport sector. ii Revised Project Development Objectives (as approved by original approving authority) The original PDOs and indicators were not revised (a) PDO Indicator(s) Original Target Actual Value Achieved Baseline Formally Revised Indicator Values (from approval at Completion or Target Value Target Values documents) Years Indicator 1 : Increase road density (km/1000 km2) Value quantitative or 30.80 36.24 45.7 48.10 Qualitative) Date achieved 12/31/2003 6/30/2009 4/28/2010 6/30/2012 Comments Road density across the Ethiopia classified network increased by 56 percent during the (incl. percent period of APL2 achievement) Indicator 2 : Increase proportion of roads in good condition (percentage) Value quantitative or 32 50 83 88 Qualitative) Date achieved 12/31/2003 6/30/2009 4/28/2010 6/30/2012 Comments The proportion of roads in good condition across the classified network of Ethiopia (incl. percent increased by 175percent over the life of APL2 achievement) Social, environmental, economic and planning management capacity of the clients Indicator 3 : improved Related activities under Value APL2 completed and quantitative or N/A YES N/A taken over by APL3 & Qualitative) 4 Date achieved 12/31/2003 6/30/2009 4/28/2010 6/30/2012 Comments The management of social and environmental issues has improved during the life of (incl. percent APL2. ERA has set-up a unit to deal with Environment and social issues and at the achievement) time of the ICR mission was carrying out industry wide training. ERA District Maintenance Organizations as profit centers by July 2005 and Indicator 4 : commercial center by July 2006 Value quantitative or N/A YES Indicator changed Qualitative) Date achieved 12/31/2003 7/31/2006 4/28/2010 6/30/2012 Comments At the time of second additional financing (AF) this indicator was changed as per (incl. percent indicator 5 achievement) iii ERA unbundled into ERA regulatory entity, and District Road Maintenance Indicator 5 : Contractors commercial enterprise Value quantitative or N/A YES N/A Qualitative) Date achieved 4/28/2010 7/31/2011 6/30/2012 Comments (incl. percent This indicator was introduced at the time of the second additional financing achievement) Share (percent) of periodic maintenance (in value terms) contracted on a competitive Indicator 6 : basis to domestic contractors Value Replaced by quantitative or 40 90 Indicator 5 Qualitative) Date achieved 12/31/2003
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